3 TIPS FOR AVOIDING PENALTY FOR NON FILING OF INCOME TAX RETURNS ON TIME

Quick Answer

To avoid income tax return penalties, taxpayers must file by the prescribed deadlines: July 31st for salaried employees, individuals, and small businesses under 44AD/44ADA, or September 30th for companies and specific partnerships. Failure to do so results in late fees ranging from Rs. 1,000 to Rs. 10,000 depending on income and timing.

Penalty for late filing of income tax

How many have of us have considered Income tax returns filing as a burden and a secondary and do not keep it on our to-do list? Here are the HOW TO AVOID PENALTY BY FILINGS INCOME TAX RETURNS WITHIN THE DUE DATE (ITR)

Shockingly more than 30% of the taxpayers do not consider it as an important compliance obligation

The government of India has been very strong and active with regards to tracking and monitoring of black money and income tax, they have started using big data to identify tax evaders and non-filers

Due Dates for Filing Income Tax Returns

The following are important not to miss due dates for filing Income Tax returns

For Salaried Employees and NRI’s
1. The due date for filing income tax returns is 31st July
For Business Persons / Individuals
1. Small Business Covered under presumptive taxation under 44AD i.e small business and with turnover less than 2 crores other than in profession shall file income tax returns within 31st July

2. Small professional service providers Covered under presumptive taxation under 44ADA i.e small business and with turnover less than 50 Lakhs other than in profession shall file it within 31st July

For Partnership Firms / LLP
1. Small Business Covered under presumptive taxation under 44AD i.e small business and with turnover less than 2 crores other than in profession shall file income tax returns within 31st July
For Companies and Partnership
1. Companies the due date for Filing of income tax returns is 30th September
2. For Partnership above turnover of 2 Crores or how to declare profit less than 8% of turnover the due date is 30th September

The penalty for Late Filing Income Tax Return ( Introduced form current year)

Taxpayers who do not file their income tax return on due dates mentioned are liable to pay late fees in form of penalty

The penalty for late filing income tax return is now as follows:

Penalty if taxable income is less than Rs.5 lakhs – Rs.1000
Late Filing between 1st August and 31st December – Rs.5000
Late Filing After 31st December – Rs.10,000

Do not miss the income tax deadline file on time and avoid penalties

For assistance on Income tax return filings contact us on 044-48560333/ + 91 9962287333 or email us on support@virtualauditor.in

Frequently Asked Questions (FAQs)

1. What is the penalty if my taxable income is less than 5 lakhs?

If your total taxable income is less than Rs. 5 lakhs, the penalty for late filing of your income tax return is Rs. 1,000. It is essential to file by the specified due dates to avoid these financial consequences imposed by the government.

2. When is the income tax return deadline for salaried employees?

For salaried employees and NRIs, the mandatory due date for filing income tax returns is July 31st. Missing this deadline makes taxpayers liable to pay late fees, which vary based on the specific delay period after the initial due date has passed.

3. How much is the penalty for filing after December 31st?

If you file your income tax return after December 31st, you are subject to a penalty of Rs. 10,000. This is the highest penalty tier mentioned for late filing, emphasizing the importance of adhering to the earlier deadlines set by the government for various taxpayer categories.

4. Is there a penalty for filing between 1st August and 31st December?

Yes, if you file your income tax return between August 1st and December 31st, you are liable to pay a penalty of Rs. 5,000. This fee applies to taxpayers who miss the July 31st deadline applicable to salaried employees, individuals, and small businesses.

5. Which businesses have a September 30th income tax deadline?

The due date for filing income tax returns is September 30th for companies and partnership companies. Additionally, this deadline applies to partnerships with a turnover exceeding 2 crores or those declaring profits less than 8% of their total turnover to satisfy compliance obligations.